OTC Exchanges: Bridging Crypto to Mainstream in the Philippines and Boosting UAE's Web3 Status
Summary:
Over-the-counter (OTC) exchanges in the Philippines aim to make cryptocurrency more accessible, especially to those less tech-savvy, by offering physical trading desks. CEO of Moneybees, Jay Ricky Villarante, suggests this approach encourages more Filipinos to engage in trading, seeing "real individuals" handle their trades. Meanwhile, in the UAE, Aminhossein Rad, CEO of Crypto Desk, predicts the long-term impact of OTC on the crypto ecosystem is significant, and that more regulated OTC desks could boost the UAE's status as a global Web3 hub.
In the Southeast Asian nation of the Philippines, a burgeoning cryptocurrency exchange utilizes physical Over-the-Counter (OTC) trading desks, aiming to appeal to those not well-versed in the cryptosphere. Jay Ricky Villarante, leader of State-approved digital asset service firm Moneybees, implies that these OTC platforms, with their inherent simplicity, act as gateways, making digital asset trading more accessible, especially to the tech-challenged individuals. Villarante observes an inclination among the Filipinos towards in-person OTC trading, owing to their emphasis on tangible financial transactions. The entrepreneur argues that clients gain confidence through direct interactions with facilitators handling their trades. The physical OTC trading stations serve to link cryptocurrencies with the traditional financial system smoothly and conveniently. This facilitates the transition between cryptocurrency and fiat for newcomers, Villarante points out. A tangible presence further normalizes cryptocurrencies, leading to a potential rise in general acceptance. According to Villarante, the strategic placement of these stations within shopping hubs and other recreational zones brings cryptocurrency to the mainstream purview.
Conversely, Aminhossein Rad, head of Dubai-based OTC platform Crypto Desk, points out the variances in short-term and long-term effects of OTC trading on overall cryptocurrency acceptance. Rad notes that immediate impacts of OTC desks on the holistic crypto ecosystem are largely negligible. He indicates that global online markets like Binance, OKX, and ByBit account for nearly 95% of everyday global trade volume. Crypto-to-fiat exchanges including OTCs act as connectors for users to transition between the two economies, contributing only a minor fraction to global daily trade volumes. However, long-term predictions by Rad suggest that as these OTC desks come under more stringent regulations, their influence on the adoption of cryptocurrencies will likely increase. Taking into account Dubai's leadership, he postulates that OTC platforms could boost the UAE's prominence as a worldwide hub for the Web3 realm.
Published At
2/7/2024 4:19:32 PM
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